cross border reverse vat changes

toshi Registered Posts: 27 ? ? ?
Hi all

Has any one implement the reverse cross border charge for vat system or does any one under stand what the HM Custom wants?? - has information provide on their website is not every clear???

Thank in advance for any help


  • Mrs Whit
    Mrs Whit Registered Posts: 4 New contributor ?
    if yr in england you pay import tax (same as vat) to hmrc when it arrives inthe country and you have to put on yr vat return and claim it back at the same time off yr total amount, sounds stupid but thats how theu do it.
  • RichardK
    RichardK Registered Posts: 107 ? ? ?
    this link should answer all you questions...........

    Under the reverse charge mechanism, it is the purchaser of the goods, rather than the seller, who is liable to account for the VAT on the supply. The supplier will not charge VAT, but will have to specify on his invoice that the reverse charge applies. The purchaser must account for VAT, but has the right to input tax recovery on the same VAT return, subject to the normal rules.

    A supplier who has made a reverse charge supply must include the value of the supply in the total value of sales figure in box 6 of the VAT return - there is no output tax to include in box 1, because that is the responsibility of the customer.

    The customer must enter the output tax payable on purchases under the reverse charge in box 1, but the value of the purchases must not be entered in box 6.

    Input tax can be reclaimed, subject to the normal rules, by including it in the total shown in box 4. The value of the purchases should be entered in box 7 in the normal way.

    The customer can reclaim this VAT as input tax on the same return as it is accounted for, subject to the normal rules, including partial exemption.
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